Segment Information | 12 Months Ended |
Dec. 31, 2014 |
Segment Reporting [Abstract] | |
Segment Information | Segment Information |
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On February 20, 2014, the Company acquired the Industrial Filtration business from Andrew Industries Limited, which is being reported as a separate reportable segment since the acquisition date. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. |
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The Company’s reportable segments are Performance Materials, Industrial Filtration, Thermal/Acoustical Metals, and Thermal/Acoustical Fibers. Other Products and Services (“OPS”) includes Life Sciences Vital Fluids. |
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Performance Materials Segment |
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The Performance Materials segment includes filtration media solutions primarily for air, fluid power, and industrial applications (“Filtration”), air and liquid life science applications (“Life Sciences Filtration”), and thermal insulation solutions for building products, appliances, and energy and industrial markets (“Thermal Insulation”). |
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Filtration products include LydAir® MG (Micro-Glass) Air Filtration Media, LydAir® MB (Melt Blown) Air Filtration Media, LydAir® SC (Synthetic Composite) Air Filtration Media, and Arioso™ Membrane Composite Media. These products constitute the critical media component of clean-air systems for applications in clean-space, commercial, industrial and residential HVAC, power generation, and industrial processes. Lydall has leveraged its extensive technical expertise and applications knowledge into a suite of media products covering the vast liquid filtration landscape across the engine and industrial fields. The LyPore® Liquid Filtration Media series address a variety of application needs in fluid power including hydraulic filters, air-water and air-oil coalescing, industrial fluid processes and diesel fuel filtration. |
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Life Sciences Filtration products have been developed to meet the requirements of life science applications including biopharmaceutical pre-filtration and clarification, diagnostic and analytical testing, respiratory protection, life protection, medical air filtration, drinking water filtration and high purity process filtration such as that found in food and beverage and medical applications. Lydall also offers Solupor® Membrane specialty microporous membranes that are utilized in various markets and applications including air and liquid filtration and transdermal drug delivery. Solupor® membranes are made from ultra-high molecular weight polyethylene and incorporate a unique combination of mechanical strength, chemical inertness, and high porosity in a unique open structure. |
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Thermal Insulation products are high performance non-woven veils, papers, mats and specialty composites for the building products, appliance, and energy and industrial markets. The Manniglas® Thermal Insulation brand is diverse in its product application ranging from high temperature seals and gaskets in ovens and ranges to specialty veils for HVAC and cavity wall insulation. The appLY® Mat Needled Glass Mats have been developed to expand Lydall’s high temperature technology portfolio for broad application into the appliance market and supplements the Lytherm® Insulation Media product brand, traditionally utilized in the industrial market for kilns and furnaces used in metal processing. Lydall’s Cryotherm® Super-Insulating Media, CRS-Wrap® Super-Insulating Media and Cryo-Lite™ Cryogenic Insulation products are industry standards for state-of-the-art cryogenic insulation designs used by manufacturers of cryogenic equipment for liquid gas storage, piping, and transportation. |
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Industrial Filtration Segment |
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The Industrial Filtration segment includes non-woven felt media and filter bags used primarily in industrial air and liquid filtration applications. Non-woven filter media is the most commonly used filter technology to satisfy increasing emission control regulations in a wide range of industries, including power, cement, steel, asphalt, incineration, mining, food, and pharmaceutical. The business also produces non-woven media that is used in automotive and other commercial applications. |
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Industrial Filtration segment products include air and liquid filtration media sold under the brand names Fiberlox® high performance filtration felts, Checkstatic™ conductive filtration felts, Microfelt® high efficiency filtration felts, Pleatlox® pleatable filtration felts, Ultratech™ PTFE filtration felts, Powertech® and Powerlox® power generation filtration felts, Microcap® high efficiency liquid filtration felts, Duotech membrane composite filtration felts, along with traditional scrim supported filtration felts. Industrial Filtration also offers extensive finishing and coating capabilities which provide custom engineered properties tailored to meet the most demanding filtration applications. The business leverages a wide range of fiber types and extensive technical capabilities to provide filtration products that meet our customers’ needs across a variety of applications providing both high filtration performance and durability. |
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Thermal/Acoustical Metals Segment |
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The Thermal/Acoustical Metals segment offers a full range of innovative engineered products to assist in noise and heat abatement within the transportation sector. Lydall products are found in underbody (tunnel, fuel tank, exhaust, rear muffler and spare tire) and under hood (engine compartment, turbo charger, and manifolds) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. |
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Thermal/Acoustical Metals segment products are stamped metal combinations which provide thermal and acoustical shielding solutions for the global automotive and truck markets. Thermal/Acoustical Metals products include AMS®, which is an all metal shield designed to be used in various vehicle applications, and Direct Exhaust Mount Heat shields, which are mounted to high temperature surfaces like exhaust down-pipes or engine manifolds using aluminized and stainless steel with high performance heat absorbing materials. Additionally, a patented CLD (constraint layer damped) material is a lightweight material with characteristics to reduce vibration and parasitic noise on powertrain mounted heat shields. |
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Thermal/Acoustical Fibers Segment |
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The Thermal/Acoustical Fibers segment offers a full line of innovative engineered products to assist in noise and heat abatement within the transportation sector. Lydall products are found in the interior (dash insulators), underbody (wheel well, fuel tank, exhaust) and under hood (engine compartment) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. |
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Thermal/Acoustical Fibers segment products offer thermal and acoustical insulating solutions comprised of organic and inorganic fiber composites for the automotive and truck markets primarily in North America. Lydall’s dBCore® is a lightweight acoustical composite that emphasizes absorption principles over heavy-mass type systems. Lydall’s dBLyte® is a high-performance acoustical barrier with sound absorption and blocking properties and can be used throughout a vehicle’s interior to minimize intrusive noise from an engine compartment and road. Lydall’s ZeroClearance® is an innovative thermal solution that utilizes an adhesive backing for attachment and is used to protect vehicle components from excessive heat. Lydall’s specially engineered wheel wells provide a solution with weight reduction and superior noise suppression capabilities over conventional designs. |
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Thermal/Acoustical Metals segment and Thermal/Acoustical Fibers segment operating results include allocations of certain costs shared between the segments. |
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Other Products and Services |
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The Life Sciences Vital Fluids business offered specialty products for blood filtration devices, blood transfusion single-use containers and the design and manufacture of single-use solutions for cell growth, frozen storage and fluid handling, as well as equipment for bioprocessing applications. |
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On January 30, 2015 the Company sold all of the outstanding shares of common stock of its Vital Fluids business, reported as Other Products and Services, for a cash purchase price of $29.9 million, subject to a post-closing adjustment (the "Disposition"). The Disposition was completed pursuant to a Stock Purchase and Sale Agreement, dated January 30, 2015, by and among the Company, and the Buyer. The Company expects to recognize an after tax gain on the sale of this business of approximately $10 to $12 million in the first quarter of 2015. |
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Net sales by segment and for OPS, as well as reconciling items, to equal to consolidated net sales for the years ended December 31, 2014, 2013, and 2012 were as follows: |
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Consolidated Net Sales | For the Years Ended December 31, | | | | | | | | | | | | |
In thousands | 2014 | | 2013 | | 2012 | | | | | | | | | | | | |
Performance Materials Segment: | | | | | | | | | | | | | | | | | |
Filtration | $ | 71,648 | | | $ | 64,752 | | | $ | 68,379 | | | | | | | | | | | | | |
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Thermal Insulation | 31,404 | | | 36,929 | | | 38,449 | | | | | | | | | | | | | |
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Life Sciences Filtration | 12,814 | | | 10,320 | | | 11,207 | | | | | | | | | | | | | |
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Performance Materials Segment net sales | 115,866 | | | 112,001 | | | 118,035 | | | | | | | | | | | | | |
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Industrial Filtration Segment: | | | | | | | | | | | | | | | | | |
Industrial Filtration | 112,220 | | | — | | | — | | | | | | | | | | | | | |
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Industrial Filtration net sales | 112,220 | | | — | | | — | | | | | | | | | | | | | |
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Thermal/Acoustical Metals Segment: | | | | | | | | | | | | | | | | | |
Metal parts | 145,135 | | | 135,833 | | | 136,276 | | | | | | | | | | | | | |
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Tooling | 19,130 | | | 22,573 | | | 17,645 | | | | | | | | | | | | | |
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Thermal/Acoustical Metals Segment net sales | 164,265 | | | 158,406 | | | 153,921 | | | | | | | | | | | | | |
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Thermal/Acoustical Fibers Segment: | | | | | | | | | | | | | | | | | |
Fiber parts | 124,458 | | | 105,876 | | | 93,519 | | | | | | | | | | | | | |
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Tooling | 4,133 | | | 8,444 | | | 917 | | | | | | | | | | | | | |
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Thermal/Acoustical Fibers Segment net sales | 128,591 | | | 114,320 | | | 94,436 | | | | | | | | | | | | | |
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Other Products and Services: | | | | | | | | | | | | | | | | | |
Life Sciences Vital Fluids | 19,682 | | | 17,175 | | | 16,853 | | | | | | | | | | | | | |
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Other Products and Services net sales | 19,682 | | | 17,175 | | | 16,853 | | | | | | | | | | | | | |
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Eliminations and Other | (4,795 | ) | | (3,933 | ) | | (4,321 | ) | | | | | | | | | | | | |
Consolidated Net Sales | $ | 535,829 | | | $ | 397,969 | | | $ | 378,924 | | | | | | | | | | | | | |
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Operating income by segment and for OPS and Corporate Office Expenses for the years ended December 31, 2014, 2013, and 2012 were as follows: |
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Operating Income | For the Years Ended December 31, | | | | | | | | | | | | |
In thousands | 2014 | | 2013 | | 2012 | | | | | | | | | | | | |
Performance Materials Segment | $ | 9,706 | | | $ | 9,462 | | | $ | 10,400 | | | | | | | | | | | | | |
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Industrial Filtration Segment | 6,412 | | | — | | | — | | | | | | | | | | | | | |
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Thermal/Acoustical Metals Segment | 13,823 | | | 14,088 | | | 14,708 | | | | | | | | | | | | | |
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Thermal/Acoustical Fibers Segment | 29,167 | | | 21,486 | | | 12,851 | | | | | | | | | | | | | |
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Other Products and Services: | | | | | | | | | | | | | | | | | |
Life Sciences Vital Fluids | 1,582 | | | 778 | | | 1,190 | | | | | | | | | | | | | |
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Corporate Office Expenses | (26,642 | ) | | (17,101 | ) | | (17,771 | ) | | | | | | | | | | | | |
Consolidated Operating Income | $ | 34,048 | | | $ | 28,713 | | | $ | 21,378 | | | | | | | | | | | | | |
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Operating results in 2014 were negatively impacted by $2.1 million of purchase accounting adjustments relating to inventory step-up for the Industrial Filtration segment and a $2.9 million commission settlement within the T/A Metals segment. Corporate Office Expenses in 2014 were negatively impacted by a $4.9 million non-cash pension plan settlement charge and $2.6 million of transaction related costs. Corporate Office Expenses in 2013 were impacted by $1.2 million of transaction related costs. Operating results in 2012 were impacted by a net gain on sale of a product line in the Performance Materials segment of $0.8 million and a loss on disposal of assets in Corporate Office Expenses and the Performance Materials segment of $1.5 million and $0.3 million, respectively. |
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Total assets by segment and for OPS and the Corporate Office were as follows at December 31, 2014, 2013 and 2012: |
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Total Assets | December 31, | | | | | | | | | | | | |
In thousands | 2014 | | 2013 | | 2012 | | | | | | | | | | | | |
Performance Materials Segment | $ | 71,325 | | | $ | 74,838 | | | $ | 74,119 | | | | | | | | | | | | | |
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Industrial Filtration Segment | 100,201 | | | — | | | — | | | | | | | | | | | | | |
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Thermal/Acoustical Metals Segment | 106,210 | | | 104,908 | | | 96,019 | | | | | | | | | | | | | |
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Thermal/Acoustical Fibers Segment | 33,109 | | | 30,176 | | | 26,830 | | | | | | | | | | | | | |
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Other Products and Services | 11,580 | | | 11,866 | | | 11,195 | | | | | | | | | | | | | |
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Corporate Office | 39,345 | | | 52,897 | | | 43,753 | | | | | | | | | | | | | |
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Total Assets | $ | 361,770 | | | $ | 274,685 | | | $ | 251,916 | | | | | | | | | | | | | |
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Total capital expenditures and depreciation and amortization by segment and for OPS and the Corporate Office for the years ended December 31, 2014, 2013 and 2012 were as follows: |
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| Capital Expenditures | | Depreciation and Amortization |
In thousands | 2014 | | 2013 | | 2012 | | 2014 | | 2013 | | 2012 |
Performance Materials Segment | $ | 4,124 | | | $ | 4,604 | | | $ | 5,231 | | | $ | 4,654 | | | $ | 4,667 | | | $ | 5,290 | |
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Industrial Filtration Segment | 1,804 | | | — | | | — | | | 4,536 | | | — | | | — | |
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Thermal/Acoustical Metals Segment | 8,544 | | | 6,027 | | | 4,063 | | | 4,578 | | | 4,777 | | | 5,019 | |
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Thermal/Acoustical Fibers Segment | 3,296 | | | 1,887 | | | 1,033 | | | 2,166 | | | 2,217 | | | 2,324 | |
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Other Products and Services | 574 | | | 243 | | | 128 | | | 804 | | | 588 | | | 596 | |
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Corporate Office | 659 | | | 1,065 | | | 949 | | | 908 | | | 454 | | | 453 | |
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Total | $ | 19,001 | | | $ | 13,826 | | | $ | 11,404 | | | $ | 17,646 | | | $ | 12,703 | | | $ | 13,682 | |
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Net sales by geographic area for the years ended December 31, 2014, 2013 and 2012 and long-lived asset information by geographic area as of December 31, 2014, 2013, and 2012 were as follows: |
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| Net Sales | | Long-Lived Assets |
In thousands | 2014 | | 2013 | | 2012 | | 2014 | | 2013 | | 2012 |
United States | $ | 345,864 | | | $ | 269,989 | | | $ | 251,695 | | | $ | 72,832 | | | $ | 48,787 | | | $ | 45,979 | |
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France | 52,534 | | | 47,831 | | | 52,517 | | | 13,861 | | | 16,436 | | | 17,463 | |
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Germany | 77,896 | | | 77,229 | | | 71,896 | | | 12,366 | | | 13,287 | | | 13,542 | |
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United Kingdom | 26,387 | | | — | | | — | | | 7,601 | | | — | | | — | |
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China | 29,401 | | | — | | | — | | | 11,225 | | | — | | | — | |
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Other | 3,747 | | | 2,920 | | | 2,816 | | | 795 | | | 1,815 | | | 1,024 | |
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Total | $ | 535,829 | | | $ | 397,969 | | | $ | 378,924 | | | $ | 118,680 | | | $ | 80,325 | | | $ | 78,008 | |
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Foreign sales are based on the country in which the sales originated (i.e., where the Company’s legal entity is domiciled). Sales to Ford Motor Company in 2014, 2013, and 2012 were $88.4 million, $79.7 million, and $71.2 million, respectively, and accounted for 16.5%, 20.0%, and 18.8% of Lydall’s net sales in the years ended December 31, 2014, 2013, and 2012, respectively. Sales to Chrysler Group LLC in 2013 and 2012 were $43.5 million and $38.0 million, respectively and accounted for 10.9% and 10.0% of Lydall's net sales in the years ended December 31, 2013 and 2012, respectively. These sales were reported in the Thermal/Acoustical Metal and Thermal/Acoustical Fiber segments. No other customers accounted for more than 10.0% of total net sales in 2014, 2013, and 2012. |